Sections 271D/271E Penalty Deleted as Transaction Was Not Loan or Deposit: ITAT Jaipur

Advertisement Sunil Kumar Vs ACIT (ITAT Jaipur) The ITAT Jaipur considered the assessee’s appeals against the orders of the CIT(A) confirming penalties levied under Sections 271D and 271E of the Income-tax Act for alleged violations of Sections 269SS and 269T. The assessee, engaged in the business of supplying building material, had filed a return under Section 44AD. During assessment proceedings, the Assessing Officer noticed cash deposits of ₹23,36,000 in the assessee’s personal bank account. The assessee explained that ₹3,36,000 belonged to a friend, who had deposited the...